When can you trade Forex ?
The forex market is the largest financial market in the world which works 24X7,if you consider the whole world as a single entity. The markets open in one side of the globe while the other half sleeps, and vice versa. Hence the term 24X7. But, that does not mean you can trade all the time.
Thus, another critical question comes to the mind “When can you trade Forex?” To understand when to trade, it is important to understand the different forex market schedules. There are basically five Forex market centers i.e. in Frankfurt (Germany), London (Great Britain), New York (U.S.A), Sydney (Australia) and Tokyo (Japan). Each of these trading market open at their own local time and it is feasible for anyone to trade online in any of them. There are times when there is an overlap in the markets at different locations; these overlapping sessions are the best time to trade. It is also a good time to trade when a major news event has occurred. The market liquidity is important for trading thus when the liquidity is low like weekends or bank holidays, it would be the worst time to trade.
To utilize these best times for trading some brokers platforms provided by the forex brokers give easy and step by step instruction on when to trade and in which currency to do so. The best forex platforms are consistent, giving multiple trading indicators, helping with analytical tools and providing the trader with freedom to strategize. The best forex platforms are usually simple, technology based and user friendly with expert advisors, analysis windows, order executions and even account histories.
Trading in the forex market happens when there is movement in the market either ways. One can earn when the market moves upwards or downwards. Here then comes the importance of the forex brokers, they provide the vital information on the market moves through forex signals. The forex brokers send out best forex signals to all their traders at a given time when the market appears to be moving positively.
The forex brokers guides the trader in choosing the right market at the right time. The trade then can make the offer / ask price ensuring the spread is smaller and thus earn more profits.
The question “When to trade forex” can easily be answered if the trader is utilizing the services of the best forex broker who provide well established forex platform and on a regular basis provide best trading signals to its traders. The broker even helps in letting the trader know in which market to trade i.e. the European or Asian or American market. As long as the best trading platform and best trading signals are available for the trader, the chances of succeeding and being a successful trader is high.
Friends, you all know that one of the advantages of trading in the Forex market is that you can trade 24 hours a day, 5 days a week (excluding Saturdays and Sundays) or the market is open which is not seen in any other stock market in the world. Daily trading in the Forex market is divided into three sessions. Such as - European, American, and Asian sessions. These are also known as London, New York, and Tokyo + Sydney sessions. Because transactions in Forex are never done in one place or at one time. For example - we know our 11-12 hour time difference with America is their day when we have their night, now you are a Bangladeshi and you want to sit in Bangladesh and conduct your business with America, do you follow your office hours and do business with them Can you? Of course not, because if you want to do official business with them, you must follow their office hours, just as they must follow your office hours. I hope the matter is clear to you by now. When the London traders finish trading, the New York traders start trading. When the New York traders finish trading, the Sydney/Tokyo traders start trading. Features of different trading sessions: Each trading session has different features. Again, when the session of a particular country is open, it is normal that the currency of that country is traded more. For example, if the Asian session is open, Japanese companies will be involved in transactions with other countries. As a result, Japan's currency, the yen, will have more transactions, while companies from different European countries will be trading with other countries when the European session is open. As a result, Europe's currency, the euro, will have more transactions. Again, when the European session closes, the companies of that country reduce their transactions, resulting in a decrease in the transactions of the Euro. Thus in a particular country's currency transaction, the type of movement may be affected for opening or closing a particular session. Forex Trading Sessions: The figure below shows the opening and closing times of different sessions in the summer and winter seasons following GMT. The table above shows the time of different trading sessions following GMT. You can add/subtract time according to your position with your needs. You know, no trading session is open for a week. Trading Week begins with the Sydney Session and ends with the New York Session. Days and times vary depending on your position in the world. Now if you live in Japan, the day will start on Monday morning. Again if you live in Europe, the day will start from Sunday afternoon. Features of sessions: Each trading session has different features depending on the session. Then let's know all the features of trading sessions Asian Session: The Asian Sydney session currently begins at 21 GMT. Only in the Sydney session, there is less transaction, and as a result price rise and fall are less. However, when the Tokyo session opened at 00:00 GMT, the volume of transactions increased. As the Asian and Australian markets are smaller than the US & UK, transactions are lower at this time. And at this time the amount of spread is a little higher. In the Asian session, AUD & NZD Dollar and Japanese Yen traded higher. So the most tradable currencies in the Asian session are - AUD / USD, AUD / JPY, AUD / NZD, JPY / USD, NZD / JPY, and NZD / USD. Since the trading volume is low and the spread is high in the Asian session, I think it is better not to trade/order in this session without knowing the overall profit. And to trade successfully in this session, you have to wake up most of the time in the morning/night and if you can't get up in the morning, you have to stay awake at night, so go ahead with strong thoughts to trade or do in this session. Thanks.
Here is some discussion about lot/volume: The lot is a lot easier. But when you go as a unit, it will seem complicated to you. So I will not go here as a unit but try to explain in a simple way. In the #Forex market we can profit from every pips movement. In other words, if the price goes from 1.1010 to 1.1020, we will have a gain or loss of 10 pips. By lot/volume we will determine how much profit or loss we will get if every pips go in our favor or against us. We are dividing #Forex brokers into 3 parts for convenience. Standard Lot BrokerMini Lot BrokerMicro Lot Broker 1 lot in standard lot broker = $ 10 / pips. But in mini lot broker 1 lot = $ 1 / pips. And 10 lot = 1 / pips in micro lot broker.So, if you open a trade with 1 lot on a standard lot broker and 10 pips go in your favor, your profit is $ 10x10 = $ 100. Even if there is a similar loss, it will be $ 100.But, if you open a trade with 1 lot on a mini lot broker and 10 pips go in your favor, your profit is $ 1x10 = $ 10. Even if there is a similar loss, it will be $ 10.And, if you open a trade with 1 lot on a micro lot broker and 10 pips go in your favor, your profit is $ 0.1x10 = $ 1. Even if there is a similar loss, it will be $ 1. Standard Lot Broker: 1 standard lot = $ 10 / pips0.1 standard lot = $ 1 / pips0.01 standard lot = $ 0.10 / pips10 standard lots = $ 100 / pipsMini Lot Broker:1 mini lot = $ 1 / pips0.1 mini lot = $ 0.10 / pips0.01 mini lot = $ 0.01 / pips10 mini lots = $ 10 / pipsMicro Lot Brokers:1 micro lot = $ 0.10 / pips0.1 micro lot = $ 0.01 / pips0.01 micro lot = $ 0.001 / pips10 micro lots = $ 1 / pips Surely you understand the difference between a standard lot, mini lot, and micro lot. Brokers adjust the lot size as per their convenience. Most brokers will allow you to trade a minimum of 0.01 lots. That is, you can get a minimum pip value of 10 cents at a standard lot broker. But in Mini Lot Broker you can get the minimum pip value 0.1 cents. And in Micro Lot Broker you can get the minimum pip value of 0.1 cents. So if your capital is low, you can trade with low risk in the mini lot or micro lot brokers. Not only can you trade 1 lot, 0.1 lot, or 0.01 lot, you can also trade 2.5 lot, 1.3 lot custom lots if you want. How do I know if my broker is a micro-lot, mini lot, or a standard lot? You can trade in micro-lots on the micro account of #TradingPoint. If you don't know if your broker is a micro lot, mini lot, or standard lot, then ask the broker's live support. Many times it is also given on their website. Or open a demo account with them and open a trade with 1 lot. If you see that there is a profit or loss of $ 10 per pips change, then you understand that it is a standard lot broker. And if you see that $ 1 is changing, then you understand that it is a mini lot broker. If you change it by 10 cents, you will understand that it is a micro lot broker. But some brokers have different lot sizes for each account type. The disclaimer: CFDs and leveraged products, in general, carry a lot of risks, and yoursThere may be a possibility of losing all the invested capital.
Binary Options trading is advertised as an easy way to make money, requiring no expertise and no previous experience in anything trading-related. It basically comes off as this get rich quick scheme largely overlooked by the masses thus far, and it’s definitely not that. The best way to understand what binary option trading really is about, is to run a brief analysis of the questions most frequently asked by beginner traders. Let’s start with the very beginning: what exactly is a binary option?A binary option is basically a contract with fixed payout and loss percentages. It also features only two possible outcomes: the contract either expires in the money or outside of it (hence its name and appealing simplicity). The payout and loss percentages vary from one broker to another, but they generally tend to run the 70%-85% scale as far as profits are concerned and the 90%-100% scale losses-wise. Indeed, there are brokers out there who will give a small percentage of the investment back to losing traders.The great thing about binary options trading (besides its simplicity of course) is the fact that it works with a wide range of underlying assets, which brings us to the next FAQ: what exactly is an underlying asset?The underlying asset is what the binary options contract is made on. One can trade binary options on currency pairs, on stocks, on commodities and on market indices. Basically, whatever stirs in the world of trading can be used as a base for binary options.Not all brokers offer binary options for all the available underlying assets, but they should and if your broker doesn’t support Forex binaries for instance, you’re probably best off moving your business elsewhere.As said above, binary options feature only two possible outcomes, therefore, there are only two possible contracts one can make on them: the Put contract and the Call one.What is a Put option? The Put option is a contract made in the hopes of the asset price being lower at the time of expiry than at the time of the purchase.What is a Call option? Those purchasing a Call option do so in the hopes that the asset price will go up, therefore it will be higher at the time of expiry than at the time of purchase.What is the investment in the case of binary options trading? The investment is the amount of money the trader effectively “wagers” on his Put or Call option. Although generally speaking, the trader is free to choose the amount of money he’s willing to invest, most brokers feature a set minimum in this respect, a minimum which is pretty high for someone looking to small-ball a little recreationally.What’s “in the money” and what does it mean when the contract expires outside the money?When the trade expires in the money, it means the trader wins and takes his profits. If a trader places a Call option on EUR/USD at 1.308 and upon expiry of his trade the asset price is 1.310, he takes a profit of about 70-80% of his initial investment. His contract ends up “in the money”. If the asset price at the time of expiry is 1.306, he ends up outside the money and loses 90-100% of his investment.What is the time of expiration for the binary trade? Binary contracts expire after a set amount of time, and the time of expiry is indeed the most important element of the trade because the asset prices at the time of purchase and expiry are always compared to find out the result of the trade. Some brokers offer pre-determined expiry times, while others allow their traders to set expiry manually.